JOIN USWith annual revision of guidance value of immovable properties not fetching revenue on the expected lines, the State government has now directed the Stamps and Registration department to develop a Geographic Information System (GIS)-based guidance value system and fix the value of properties in every street in order to prevent revenue pilferage.
Linking the guidance value to the GIS is aimed at ending discretion-based registration of properties, which is found to be one of the major reasons for corruption and loss of revenue to the government. A direction in this regard was given at a meeting chaired by Chief Minister Siddaramaiah to take stock of the State finances recently.
Discretionary power
In the existing system, the guidance value is fixed for properties located on main roads, highways and multi-storey apartments. This allows sub-registrars to use their discretion to fix the value of properties located in the surrounding areas. It is found that the value fixed at the time of registration for such properties is far too less in many cases, leading to the loss of revenue to the government, official sources explained.
The government had, in 2013, decided to make guidance value revision an annual exercise to narrow the gap it had with the market value. It was one of the many revenue augmentation measures that Chief Minister Siddaramaiah initiated. A permanent valuation cell was also set up in the Stamps and Registration department to keep a watch on property market and recommend rates for guidance value revision. The intention was to increase its revenue from stamp duty and registration charges. The guidance value was increased by an average 50 per cent last year.
However, the department barely managed to reach its budgeted target for revenue collection in the last financial year, and it has not shown any impressive growth in the current fiscal year also. The department has recently informed the Finance department that it will not be able to surpass the target of Rs 7,450 crore in the current fiscal year. Inspector General of Registration and Commissioner of Stamps N Prakash said that the department had begun working on developing the GIS-based guidance value revision system.
“Property value is a dynamic process. It keeps changing depending on the development. We have to coordinate with urban local bodies for developing the new system. So it will be done in a phased manner,” he added.